(Reuters) - Cybersecurity firm SailPoint said on Tuesday it was targeting a valuation of up to $11.5 billion in its initial public offering in the United States.
Private equity-backed companies are expected to lead the charge in the IPO market as sponsors look to unload holdings and return capital to investors.
SailPoint and parent Thoma Bravo are offering 50 million shares priced between $19 and $21 each to raise a total of up to $1.05 billion. Austin, Texas-based SailPoint is offering 47.5 million shares while Thoma Bravo is selling 2.5 million shares.
The IPO will be a major test of investor appetite and comes after underwhelming debuts from some high-profile listings. It could set the tone for other firms considering listing in the coming months.
While there has been a recovery in the IPO market, investors remain selective about which companies to back and are cautious about valuations.
Founded in 2005, SailPoint specializes in identity and access management software that helps businesses mitigate unwanted user access and reduce the risk of sensitive data leaks.
SailPoint's identity security offerings compete with products from IBM, Microsoft, Oracle, CyberArk, Okta and One Identity.
Its customers include truckmaker PACCAR, student loan servicer Nelnet and British supermarket chain ASDA.
POISED FOR STOCK MARKET RETURN
Thoma Bravo, which manages about $166 billion in assets, first acquired SailPoint in 2014.
Three years later, the Chicago-based buyout firm took SailPoint public in New York, in what was Thoma Bravo's first-ever IPO of a portfolio company.
Thoma Bravo exited its position in SailPoint by the end of 2018. SailPoint traded on the New York Stock Exchange from 2017 until 2022, when Thoma Bravo reacquired it in a $6.9 billion deal.
Cornerstone investors AllianceBernstein and Dragoneer Investment Group have separately indicated interest in buying up to 20% of the shares sold in the IPO.
Morgan Stanley and Goldman Sachs are the lead underwriters.
SailPoint will list on the Nasdaq under the symbol "SAIL."
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Savio D'Souza, Varun H K and Saumyadeb Chakrabarty)
